The Fiscal Cliff deal may be (mostly) behind us, but its effects are working their way into our economy. Not only are stocks up nicely, but there's some spending in store that's designed to stimulate our economy: infrastructure spending.
From roads and bridges and railways that we rely on to get us from point A to B ... to pipelines and electrical grids that move power to even the remotest parts of the country ... infrastructure can be big business for the companies that are building or repairing it.
But the United States isn't the only country spending big bucks to goose its economy.
China Railways Growing Faster
Than a Speeding Bullet Train
The Chinese Railway Ministry announced plans to spend $104 billion in 2012 to expand its already massive national railway system.
That's a 30% increase over what China spent on railroads last year.
China's railway system is already huge. At the end of 2012, 60,000 miles of railroad lines were in operation, which includes an amazing 5,800 miles of high-speed bullet trains.
The Chinese high-speed trains are amazing. For example, the Beijing-to-Shanghai train—distance-wise, that's about the same trip as going from Milwaukee to Dallas—can be made in less than five hours.
If you've traveled by train in the U.S., you know that you're not always in for the most-comfortable ride. But take a look at the style in which Chinese passengers can travel ...
Heading to Tianjin, in northern China
And it is cheap. The cheapest ticket on that route is about $70, which is about half the price of what a two-hour airplane ticket would cost for a similar trip.
But for $270, you could get a business-class seat that is very similar to business class on an airplane—with fully reclining leather seats, a personal video screen with touch-screen controls, and a server to bring you food and drinks.
Connecting a Continent (or Two)
China has ambitious plans for its high-speed railway system. It plans to ultimately expand its high-speed rail lines south to Singapore and west toward India, Russia, Germany and even France!
That is a huge amount of capital spending, and somebody is going to make billions of dollars from this great railroad-building boom.
How can you profit from this railroad boom? One winner will be China Railway Construction, which is the largest railroad construction company in China.
The company, by the way, is majority-owned by the Chinese government. So who do you think will be awarded most of those construction contracts?
China Railway Construction trades on the Hong Kong Stock Exchange under the symbol 1186, and is currently trading for around $1.25 a share (in U.S. dollars). Yep, just a little more than one buck!
You don't have to visit overseas exchanges to be able to trade on them!
As an investor, I think it's important to be ready and able to buy stocks on both domestic and foreign exchanges. But if you're not yet comfortable with putting money to work on an overseas exchange like Hong Kong's, you don't have to miss out.
You can also buy China Railway Construction on the U.S. over-the-counter market under the symbol CWYCF for close to the same price per share.
I'm not suggesting that you rush out and buy this stock. As always, timing is everything so you should wait for my buy signal in The Asian Century.
However, my goal is to open your eyes to an ocean of dynamic, rapidly growing, profitable investment opportunities that can be found across the Pacific Ocean ... and traded right here at home.
P.S. China is gobbling up energy as quickly as it can get its hands on it. And one place they might be getting it from in large quantities in the future is right here in the U.S.!
At my friend Sean Brodrick's recent Global Energy Summit, a stellar panel of industry experts detailed the surprising energy trends in store for 2013 and beyond ... PLUS how you can profit from them.
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01-25-2013 11:05 AM